Residential Building Guarantees
Updated: Nov 1, 2019
What is a Residential Building Guarantee and should you have one for your New Build or Renovation?
The Answer is Yes! Building a new home, completing a large renovation or re-cladding your home is perhaps one of the the biggest investments you’ll ever make! Having a Guarantee in place reduces the risk if anything goes wrong.
A Residential Guarantee is basically a building warranty. It covers you for structural defects for up to 10 years (or as otherwise stated in the policy wording). It also covers you if your builder can’t complete the job (usually due to death, illness or bankruptcy), the company will find someone to complete your build, pay for extra costs and some even cover alternative accommodation.
These Guarantees usually have a one off payment, are not too costly, range in price from $500 to $3,000 (depending on the cost of your build) and are applied for by your builder at the same time as you sign your building contract. You should receive a copy of the policy wording from your builder to look over and a confirmation once the policy has been approved.
There are many builders out there offering Guarantees that do not extend further than the standard implied warranties! Also some warranties or Guarantees are not backed by a third party deeming them invalid in the case of bankruptcy or insolvency. It is so important to do your research and to get advice when it comes to any warranty or guarantee associated with your Building project.
New Zealand Certified Builders members offer HALO – New Zealand’s most comprehensive 10 year Residential Guarantee backed by Lloyds of London with a A+ financial strength.
10 year cover for the full contract price for structural defects including weather tightness issues once the building works have been completed
10 year cover for the full contract price, for non-structural defects once the building works have been completed
Loss of deposits if the builder doesn’t start the building work
Cost to complete the works if they are started but not completed
Email us on firstname.lastname@example.org for an information brochure about HALO Guarantee
We compared the top rated Guarantees on the market and this is what we found: